User Fees Relating to Enrolled Agents and Enrolled Retirement Plan Agents, 58968-58972 [2022-21087]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 87, Number 188 (Thursday, September 29, 2022)]
[Rules and Regulations]
[Pages 58968-58972]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21087]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[TD 9966]
RIN 1545-BQ17


User Fees Relating to Enrolled Agents and Enrolled Retirement 
Plan Agents

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: These final regulations amend existing regulations relating to 
user fees for enrolled agents and enrolled retirement plan agents. The 
final regulations increase the renewal user fee for enrolled retirement 
plan agents from $67 to $140. In addition, the final regulations 
increase both the enrollment and renewal of enrollment user fees for 
enrolled agents from $67 to $140. These regulations affect individuals 
who are or apply to become enrolled agents and individuals who are 
enrolled retirement plan agents. The Independent Offices Appropriation 
Act of 1952 authorizes charging user fees.

DATES: 
    Effective date: These regulations are effective October 31, 2022.
    Applicability date: For the date of applicability, see Sec. Sec.  
300.5(d), 300.6(d), and 300.09(d).

FOR FURTHER INFORMATION CONTACT: Mark Shurtliff at (202) 317-6845 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains amendments to the regulations in 26 CFR part 
300--User Fees. On March 1, 2022, a notice of proposed rulemaking (REG-
114209-21) and notice of public hearing was published in the Federal 
Register (87 FR 11366). The document proposed amending the regulations 
relating to the user fees for enrolled agents and enrolled retirement 
plan agents. The document proposed increasing the amount of the renewal 
user fee for enrolled retirement plan agents from $67 to $140. In 
addition, the document proposed increasing both the enrollment and 
renewal of enrollment user fees for enrolled agents from $67 to $140. 
The document contains a detailed explanation of the legal background 
and user fee calculations regarding the amendments to these 
regulations.
    Six comments responding to the notice of proposed rulemaking were 
received, including comments from the National Association of Enrolled 
Agents (NAEA). On May 3, 2022, representatives from the NAEA, 
Department of the Treasury (Treasury Department), the IRS, and the 
Small Business Administration (SBA), held a teleconference to listen to 
NAEA's comments about the proposed rulemaking. In addition, two 
requests to speak at the scheduled public hearing were received. A 
public hearing was held on May 11, 2022. After consideration of the 
written comments, teleconference comments, and testimony at the public 
hearing, the Treasury Department and the IRS have decided to adopt 
without modification the regulations proposed by the notice of proposed 
rulemaking.

Summary of Comments

    The six comments submitted in response to the notice of proposed 
rulemaking and a summary of the teleconference comments are available 
at www.regulations.gov or upon request. Some of the comments that were 
submitted did not seek modification or clarification of the user fee as 
set forth in the proposed regulations. One commenter expressed concern 
with how the special enrollment examination for enrolled agents (EA 
SEE) is being administered. The commenter also recommended using the 
user fees in these regulations to provide resources for tax 
professionals that would improve the service they provide to their 
clients. The user fees in these regulations are not used by the 
Treasury Department or the IRS to administer the EA SEE, or to provide 
resources for tax professionals that improve the service they provide 
to their clients. Therefore, comments regarding the EA SEE and 
additional resources identified by the commenter are outside the scope 
of these regulations. Another commenter suggested that the IRS should 
raise the amount of the user fee to apply for or renew a preparer tax 
identification number (PTIN) in order to (1) lower the cost of user 
fees relating to enrolled agents and (2) encourage more individuals to 
become enrolled agents. These regulations do not relate to the PTIN 
user fee or the PTIN program. Therefore, comments regarding the PTIN 
program and related user fees are outside the scope of these 
regulations. Finally, one commenter suggested that it is inconsistent 
for the IRS to charge user fees in order to administer the enrollment 
and renewal of enrollment program but not charge user fees for other 
programs (for example, participation in the Annual Filing Season 
Program). Again, comments regarding programs other than the enrollment 
and renewal of enrollment program are outside the scope of these 
regulations. The summary of comments below addresses those comments 
that make recommendations concerning or seeking clarification of the 
user fees set forth in the proposed regulations relating to the user 
fees for enrolled agents and enrolled retirement plan agents.

A. Amount of User Fees

    Four commenters expressed concern with the overall amount of the 
proposed enrollment and renewal of enrollment user fees and requested 
information regarding why the user fees are required.
    The Independent Offices Appropriation Act of 1952 (IOAA) (31 U.S.C. 
9701) authorizes each agency to promulgate regulations establishing the 
charge for services provided by the agency. The IOAA states that the 
services provided by an agency should be self-sustaining to the extent 
possible. 31 U.S.C. 9701(a). The IOAA provides that user fee 
regulations are subject to policies prescribed by the President, which 
are currently set forth in the Office of Management and Budget (OMB) 
Circular A-25 (OMB Circular), 58 FR 38142 (July 15, 1993).
    Section 6a(1) of OMB Circular A-25 states that when a service 
offered by a Federal agency provides special benefits to identifiable 
recipients beyond those accruing to the general public, the agency 
should establish a user fee to recover the full cost of providing the 
service. An agency that seeks to impose a user fee for government-
provided services must calculate the full cost of providing those 
services.
    In accordance with OMB Circular A-25, the IRS Return Preparer 
Office (RPO) completed its 2021 biennial review of the enrollment and 
renewal of enrollment user fees associated with enrolled agents and 
enrolled retirement plan agents. As discussed in the notice of proposed 
rulemaking, during its review the RPO took into account the increase in 
labor, benefits, and overhead costs incurred in connection with 
providing enrollment services to individuals who enroll or renew

[[Page 58969]]

enrollment as enrolled agents and renew enrollment as enrolled 
retirement plan agents since the user fee was last increased in 2019. 
The proposed increase took into account the additional staffing that 
allows the RPO to provide a higher quality of service to individuals 
seeking to enroll or renew enrollment. The RPO also took into account a 
reallocation of certain labor costs in their methodology. The RPO 
followed the generally accepted accounting principles established by 
the Federal Accounting Standards Advisory Board. The RPO determined 
that the full cost of administering the program for enrolled agents and 
enrolled retirement plan agents has increased from $67 to $140 per 
application for enrollment or renewal of enrollment. That amounts to a 
$73 increase per application for enrollment or renewal of enrollment. 
The enrollment user fee is a one-time cost, and renewal of enrollment 
user fees are due once every three years, so the increase amounts to an 
additional $24.33 per year.

B. OMB Circular A-25 Requirements

    Two of the commenters stated that the IRS did not fully comply with 
OMB Circular A-25. Two of the commenters questioned whether the service 
related to the user fees in these regulations confers a special benefit 
on enrolled agents and enrolled retirement plan agents. One of the 
commenters indicated that the service the IRS provides under these 
regulations benefits the general public rather than a specific 
beneficiary (that is, enrolled agents and enrolled retirement plan 
agents). Finally, two of the commenters stated that OMB Circular A-25 
allows for an exception to the user fee requirement.
    The Treasury Department and the IRS disagree with the comments 
regarding OMB Circular A-25. Section 6a(1) of OMB Circular A-25 states 
that when a service offered by a Federal agency provides special 
benefits to identifiable recipients beyond those accruing to the 
general public, the agency should establish a user fee to recover the 
full cost of providing the service. An agency that seeks to impose a 
user fee for government-provided services must calculate the full cost 
of providing those services. Under OMB Circular A-25, a user fee should 
be set at an amount that recovers the full cost of providing a service, 
unless the OMB grants an exception. The full cost of providing a 
service includes both the direct and indirect costs of providing the 
service.
    The IRS provides enrollment and renewal of enrollment services to 
specific, identifiable recipients: enrolled agents and enrolled 
retirement plan agents. An individual who has been granted enrollment 
as an enrolled agent or an enrolled retirement plan agent may practice 
before the IRS, including representing taxpayers. The IRS confers 
benefits on individuals who are enrolled agents or enrolled retirement 
plan agents beyond those that accrue to the general public by allowing 
them to practice before the IRS. Because the ability to practice before 
the IRS is a special benefit that does not accrue to the general 
public, the IRS charges a user fee to recover the full cost associated 
with administering the enrollment and renewal of enrollment program.
    An agency is required to set the user fee at an amount that 
recovers the full cost of providing the service unless the agency 
requests, and the OMB grants, an exception to the full-cost 
requirement. Under section 6c(2) of OMB Circular A-25, the OMB may 
grant exceptions when the cost of collecting the fees would represent 
an unduly large part of the fee for the activity or when any other 
conditions exist that, in the opinion of the agency head, justifies an 
exception. When the OMB grants an exception, the agency does not 
collect the full cost of providing the service and must fund the 
remaining cost of providing the service from other available funding 
sources. Consequently, the agency subsidizes the cost of the service to 
the recipients of reduced-fee services even though the service confers 
a special benefit on those recipients who would otherwise be required 
to pay the full cost of receiving the benefit as provided by OMB 
Circular A-25. The cost of collecting the user fees in these 
regulations does not represent an unduly large part of the fee. In 
addition, the Treasury Department and the IRS have not identified any 
conditions that exist that would justify an exception to the full-cost 
requirement. Therefore, it is appropriate for the IRS to recover the 
full cost it incurs to provide enrollment and renewal of enrollment 
services to individuals seeking to practice before the IRS as enrolled 
agents or enrolled retirement plan agents.

C. Justification for Increasing the User Fees

    One of the commenters expressed concern with the amount by which 
the user fees have increased since 2019. Specifically, user fees were 
increased from $30 to $67 in 2019, and the notice of proposed 
rulemaking for these final regulations proposed to increase the user 
fees from $67 to $140. The commenter questioned how the RPO's 
reallocation of labor costs could account for the increases.
    The amount of the user fee increases can be explained, in part, by 
certain reallocations of labor costs and how other user fees have 
affected the user fees relating to the enrollment and renewal of 
enrollment program for enrolled agents and enrolled retirement plan 
agents. On September 30, 2010, the Treasury Department and the IRS 
published two final regulations in the Federal Register: (1) final 
regulations (TD 9501, 75 FR 60309) that required tax return preparers 
who prepare for compensation all or substantially all of a tax return 
or claim for refund to obtain a PTIN and (2) final regulations (TD 
9503, 75 FR 60316) that required a user fee to apply for or renew a 
PTIN. Individuals applying for, or renewing, a PTIN were to be subject 
to Federal tax-compliance and suitability checks and were required to 
pay a $50 user fee (plus an additional amount payable directly to a 
third-party vendor) to obtain or renew a PTIN. All enrolled agents and 
certain enrolled retirement plan agents were required to obtain a PTIN 
as a condition of enrollment and renewal of enrollment. TD 9527, 76 FR 
32286; Notice 2011-91, 2011-47 I.R.B. 792. On April 19, 2011, the 
Treasury Department and the IRS published in the Federal Register (76 
FR 21805) a final regulation (TD 9523) that reduced the amount of the 
user fees for the initial enrollment and renewal of enrollment for 
enrolled agents and enrolled retirement plan agents from $125 to $30. 
The user fee to enroll or renew enrollment was reduced because certain 
procedures, including Federal-tax compliance and suitability checks, 
which were previously performed as part of the enrolled agent and 
enrolled retirement plan agent enrollment application process, were to 
be performed as part of the required process to obtain a PTIN.
    As required by the IOAA and OMB Circular A-25, the RPO conducted a 
biennial review of the enrollment and renewal of enrollment user fees 
associated with enrolled agents and enrolled retirement plan agents in 
2017. During its review the RPO took into account the increase in 
labor, benefits, and overhead costs incurred in connection with 
providing services to individuals who enroll or renew enrollment as 
enrolled agents and enrolled retirement plan agents since the user fee 
was changed in 2011. In addition, the RPO determined that costs 
associated with Federal tax-compliance checks and suitability checks on 
applicants for enrollment and renewal should be recovered as part of 
the user fee for administering the enrollment and

[[Page 58970]]

renewal of enrollment programs (and not the PTIN user fee). The 2017 
biennial review also took into account new costs associated with 
administering the program for enrolled agents and enrolled retirement 
plan agents, including the costs of operating a dedicated toll-free 
helpline in the RPO for enrollment and renewal of enrollment matters. 
The RPO determined that the full cost of administering the program for 
enrolled agents and enrolled retirement plan agents had increased from 
$30 to $67 per application for enrollment or renewal of enrollment. On 
May 13, 2019, the Treasury Department and the IRS published in the 
Federal Register (84 FR 20801-01) a final regulation (TD 9858) that 
established the current $67 user fee per enrollment or renewal of 
enrollment. The user fee complied with the directive in OMB Circular A-
25 to recover the full cost of providing a service that confers special 
benefits on identifiable recipients beyond those accruing to the 
general public.
    The user fees for enrollment and renewal of enrollment were $125 
prior to the RPO's reallocation of certain labor costs related to the 
PTIN user fee in 2011. The proposed user fee of $140 recovers many of 
the same costs associated with the RPO's administration of the 
enrollment and renewal of enrollment program that were recovered in the 
enrollment and renewal of enrollment user fees prior to the 
reallocation of certain labor costs to the PTIN user fee, as well as 
additional staffing and services the RPO currently provides associated 
with enrollment and renewal of enrollment. Even though the RPO has 
increased its staff to provide a higher quality of service, and now 
provides additional services, the user fee for enrollment and renewal 
of enrollment is only $15 more than the enrollment and renewal of 
enrollment fees in 2011.
    One of the commenters expressed concern about the number of full-
time equivalent (FTE) employees assigned to the enrollment and renewal 
of enrollment program, FTE activities, and the ratio of managers to 
staff employees. The commenter stated that there were 17 FTEs assigned 
to the enrollment and renewal of enrollment program, including three 
managers and 14 staff employees. The commenter questioned whether that 
number of managers and FTEs was necessary to administer the enrollment 
and renewal of enrollment program.
    The employment and management figures cited by the commenter are 
not accurate. There are 14 employees assigned entirely to the 
enrollment and renewal of enrollment program, including two managers 
that oversee the 12 other employees. One of the managers is a director 
who oversees five FTEs, but only two of those FTEs are assigned fully 
to the enrollment and renewal of enrollment program (and whose salary, 
benefits, and associated overhead are charged to the enrollment and 
renewal of enrollment program). Because the director oversees three 
FTEs who are not fully assigned to the enrollment and renewal of 
enrollment program, not all of the director's salary is charged to the 
enrollment and renewal of enrollment program. The other manager is a 
frontline manager who oversees 10 FTEs, all of whom are dedicated 
entirely to the enrollment and renewal of enrollment program.
    The IRS determines the cost of its services and the activities 
involved in producing them through a cost-accounting system that tracks 
costs to organizational units. The lowest organizational unit in the 
IRS's cost-accounting system is called a cost center. There are two 
cost centers related to the enrollment and renewal of enrollment 
program: the Policy and Management Cost Center and the Enrollment Cost 
Center. The Policy and Management Cost Center includes three FTEs: one 
director, one senior analyst, and one administrative assistant. The 
director oversees the entire enrollment and renewal of enrollment 
program. The senior analyst manages inventory, handles system 
administrator duties for the toll-free helpline, and is responsible for 
reporting requirements for the enrollment and renewal of enrollment 
program. The administrative assistant provides administrative support 
to the director and staff, processes mail (including applications, 
checks, and general correspondence), uploads mail to be distributed to 
legal instrument examiners, and other administrative support duties 
(including managing the director's calendar and filing personnel 
documents).
    The Enrollment Cost Center includes one manager, one clerk, and 
nine legal instrument examiners. The manager is responsible for work 
assignments, work reviews, employee evaluations, leave approvals, and 
other managerial tasks. The clerk processes mail, prints and mails 
enrollment and renewal of enrollment certificates and cards, updates 
enrolled agent and enrolled retirement plan agent account information, 
makes electronic copies of paper documents, and provides clerical 
assistance with issuing notices to enrolled agents and enrolled 
retirement plan agents. The nine legal instrument examiners process 
enrollment and renewal of enrollment forms, make referrals to the RPO's 
suitability department for Federal tax-compliance checks and criminal 
background checks (if necessary), document findings and eligibility 
status in the RPO's case-tracking software, answer calls on the toll-
free helpline, and respond to emails from enrolled agents and enrolled 
retirement plan agents. In addition, to improve the level of service 
for processing, the toll-free telephone operations staffing has 
increased, quality review programs have been implemented, and 
correspondence backlogs have been eliminated.
    The RPO has determined that these managers and other employees are 
necessary to effectively administer the enrollment and renewal of 
enrollment program and provide high-quality service to individuals 
seeking to enroll or renew enrollment.
    The same commenter also questioned a reallocation of costs that 
partially accounted for the proposed increased fee for enrollment or 
renewal of enrollment. This reallocation refers to a portion of 
oversight and support costs that had previously been recovered through 
other funding sources. During the biennial review, the RPO determined 
that these costs were associated with the enrollment and renewal of 
enrollment program and thus were appropriately recovered through the 
enrollment and renewal of enrollment user fees.

D. Impact of User Fees on Enrollment and Renewal of Enrollment of 
Enrolled Agents and Enrolled Retirement Plan Agents

    Four of the commenters opined that the Treasury Department and the 
IRS should take into account that enrolled agents help improve the 
Federal tax system. For example, enrolled agents are required to take 
continuing education courses, which enable them to accurately prepare 
tax returns and efficiently resolve taxpayer disputes with the IRS. The 
four commenters expressed concern that the proposed user fee increases 
may discourage individuals from enrolling as enrolled agents or 
renewing their enrollment.
    The Treasury Department and the IRS recognize the valuable service 
enrolled agents and enrolled retirement plan agents provide to 
taxpayers as well as the contributions they make to improving the 
Federal tax system. As discussed in Section A of this preamble, despite 
the service enrolled agents and enrolled retirement plan agents provide 
to taxpayers, OMB Circular A-25 states that when a service offered by a 
Federal agency provides special benefits to

[[Page 58971]]

identifiable recipients beyond those accruing to the general public, 
the agency should establish a user fee to recover the full cost of 
providing the service (unless the agency requests, and the OMB grants, 
an exception to the full-cost requirement). As discussed in Section B 
of this preamble, the IRS confers benefits on individuals who are 
enrolled agents and enrolled retirement plan agents beyond those that 
accrue to the general public by allowing them to practice before the 
IRS. The Treasury Department and the IRS comply with OMB Circular A-25 
by charging user fees to recover the full cost of overseeing the 
enrollment and renewal of enrollment program. The Treasury Department 
and the IRS have not requested an exception from the OMB because there 
is no data that indicates that the user fee for enrollment or renewal 
of enrollment is cost prohibitive or that any other condition exists 
that justifies an exception.

E. Regulatory Flexibility Act (RFA) Compliance

    One commenter stated that the Treasury Department and the IRS 
should have conducted an initial regulatory flexibility analysis 
pursuant to the RFA, based on the assumption that these regulations 
will have a significant economic impact on a substantial number of 
small entities. The commenter explained that it surveyed the enrolled 
agent community and found that 53 percent of enrolled agents are sole 
practitioners and 46 percent work for a firm. In the commenter's view, 
sole proprietorships should be considered small entities and the firms 
that employ enrolled agents (which sometimes reimburse enrolled agents 
for their user fees) are generally small businesses. Therefore, the 
commenter concluded that the user fees in these regulations would have 
a significant economic impact on a substantial number of small 
entities.
    The Treasury Department and the IRS disagree that these regulations 
will have a significant economic impact on a substantial number of 
small entities. As discussed in the notice of proposed rulemaking, only 
individuals, not businesses, can be enrolled agents or enrolled 
retirement plan agents. Accordingly, the user fee primarily affects 
individuals who are enrolled agents, apply to become enrolled agents, 
or are enrolled retirement plan agents.
    Since individuals are not ``small entities'' for purpose of the 
RFA, any economic impact of the user fees on small entities generally 
will occur only when an enrolled agent or enrolled retirement plan 
agent owns a small business or when a small business employs enrolled 
agents or enrolled retirement plan agents and reimburses them for their 
user fees.
    Even if a substantial number of small businesses are affected by 
reimbursing enrolled agents or enrolled retirement plan agents for 
their user fees, a regulatory flexibility analysis would not be 
required because the economic impact on small entities is not 
significant. The economic impact on any small entities affected would 
be limited to paying, triennially, the $73 difference in cost between 
the $140 user fee and the previous $67 user fee (for each enrolled 
agent or enrolled retirement plan agent who a small entity employs and 
reimburses).
    The RFA does not define the term ``significant economic impact;'' 
however, the SBA has provided guidance for government agencies on how 
to comply with the RFA, including determining whether a regulation will 
have a significant economic impact. The SBA's guidance is available at 
https://cdn.advocacy.sba.gov/wp-content/uploads/2019/06/21110349/How-to-Comply-with-the-RFA.pdf. The SBA's guidance explains that one 
measure for determining the economic impact is the percentage of 
revenue or percentage of gross revenues affected. For example, if the 
cost of implementing a particular rule represents three percent of the 
profits in a particular sector of the economy and the profit margin in 
that industry is two percent of gross revenues (an economic structure 
that occurs in the food marketing industry, where profits are often 
less than two percent), the implementation of the proposal would drive 
many businesses out of business (all except the ones that beat a three 
percent profit margin). According to the SBA's guidance, the regulation 
in this example would have a significant economic impact.
    The SBA's guidance further explains that the economic impact does 
not have to completely erase profit margins to be significant. For 
example, the implementation of a rule might reduce the ability of the 
firm to make future capital investment, thereby severely harming its 
competitive ability, particularly against larger firms. This scenario 
may occur in the telecommunications industry, where a regulatory regime 
that harms the ability of small companies to invest in needed capital 
will not put them out of business immediately, but over time may make 
it impossible for them to compete against companies with significantly 
larger capitalizations. The impact of that rule would then be 
significant for smaller telecommunications companies.
    Finally, the SBA's guidance explains that other measures may be 
used. For example, the impact could be significant if the cost of the 
proposed regulation (a) eliminates more than 10 percent of the 
businesses' profits; (b) exceeds one percent of the gross revenues of 
the entities in a particular sector; or (c) exceeds five percent of the 
labor costs of the entities in the sector.
    While data relevant to the SBA's guidance is limited, the Treasury 
Department and the IRS have carefully considered public information 
related to the economic impact of the proposed user fees. For example, 
Surgent, an organization that provides preparation courses for the EA 
SEE, states on its website at https://www.surgent.com that the average 
salary for an enrolled agent as of December 2021 is $59,020. The 
triennial user fee for enrolled agents and enrolled retirement plan 
agents is $140, or approximately $47 per year. Thus, the annualized 
cost of enrollment as an EA is approximately 0.0008 percent of the 
average yearly salary of an enrolled agent. The triennial user fee has 
increased from $67 to $140 per application for enrollment or renewal of 
enrollment. That amounts to a $73 increase per application for 
enrollment or renewal of enrollment. The increase amounts to $24.33 per 
year, or 0.0004 percent of the average yearly salary of an enrolled 
agent.
    Based on the foregoing considerations, the Treasury Department and 
the IRS conclude that the rule is not expected to have a significant 
economic impact on a substantial number of small entities, and a 
regulatory flexibility analysis is not required.
    After consideration of the comments, the proposed regulations are 
adopted without change.

Special Analyses

I. Regulatory Planning and Review

    These regulations are not significant and are not subject to review 
under section 6(b) of Executive Order 12866 pursuant to the Memorandum 
of Agreement (April 11, 2018) between the Treasury Department and the 
OMB regarding review of tax regulations.

II. Regulatory Flexibility Act

    Pursuant to the RFA (5 U.S.C. chapter 6), it is hereby certified 
that these regulations will not have a significant economic impact on a 
substantial number of small entities. As discussed in Section E of this 
preamble, the Treasury Department and the IRS have determined that the 
rule is not expected to have a significant economic impact

[[Page 58972]]

on a substantial number of small entities and a regulatory flexibility 
analysis is not required.
    Pursuant to section 7805(f) of the Internal Revenue Code, the 
notice of proposed rulemaking was submitted to the Chief Counsel of the 
Office of Advocacy of the SBA for comment on its impact on small 
business. The Chief Counsel for the Office of Advocacy of the SBA did 
not provide any written comments; however, they reached out to the 
Treasury Department and the IRS regarding comments they received from 
the NAEA.

III. Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires that agencies assess anticipated costs and benefits and take 
certain other actions before issuing a final rule that includes any 
Federal mandate that may result in expenditures in any one year by a 
state, local, or tribal government, in the aggregate, or by the private 
sector, of $100 million in 1995 dollars, updated annually for 
inflation. This rule does not include any Federal mandate that may 
result in expenditures by state, local, or tribal governments, or by 
the private sector in excess of that threshold.

IV. Executive Order 13132: Federalism

    Executive Order 13132 (Federalism) prohibits an agency from 
publishing any rule that has federalism implications if the rule either 
imposes substantial, direct compliance costs on state and local 
governments, and is not required by statute, or preempts state law, 
unless the agency meets the consultation and funding requirements of 
section 6 of the Executive order. These final regulations do not have 
federalism implications and do not impose substantial direct compliance 
costs on state and local governments or preempt state law within the 
meaning of the Executive order.

Drafting Information

    The principal author of these regulations is Mark Shurtliff, Office 
of the Associate Chief Counsel (Procedure and Administration). Other 
personnel from the Treasury Department and the IRS participated in the 
development of the regulations.

List of Subjects in 26 CFR Part 300

    Reporting and recordkeeping requirements, User fees.

Adoption of Amendments to the Regulations

    Accordingly, the Treasury Department and the IRS amend 26 CFR part 
300 as follows:

PART 300--USER FEES

0
Paragraph. 1. The authority citation for part 300 continues to read as 
follows:

    Authority:  31 U.S.C. 9701.


0
Par. 2. Section 300.5 is amended by revising paragraphs (b) and (d) to 
read as follows:


Sec.  300.5   Enrollment of enrolled agent fee.

* * * * *
    (b) Fee. The fee for initially enrolling as an enrolled agent with 
the IRS is $140.
* * * * *
    (d) Applicability date. This section is applicable beginning 
October 31, 2022.

0
Par. 3. Section 300.6 is amended by revising paragraphs (b) and (d) to 
read as follows:


Sec.  300.6   Renewal of enrollment of enrolled agent fee.

* * * * *
    (b) Fee. The fee for renewal of enrollment as an enrolled agent 
with the IRS is $140.
* * * * *
    (d) Applicability date. This section is applicable beginning 
October 31, 2022.

0
Par. 4. Section 300.9 is amended by revising paragraphs (b) and (d) to 
read as follows:


Sec.  300.9  Renewal of enrollment of enrolled retirement plan agent 
fee.

* * * * *
    (b) Fee. The fee for renewal of enrollment as an enrolled 
retirement plan agent with the IRS is $140.
* * * * *
    (d) Applicability date. This section is applicable beginning 
October 31, 2022.

Paul J. Mamo,
Assistant Deputy Commissioner for Services and Enforcement.
    Approved: September 20, 2022.
Lily L. Batchelder,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2022-21087 Filed 9-27-22; 8:45 am]
BILLING CODE 4830-01-P